The plaintiff sought damages of approximately $4.8 million for breach of contract, negligent misrepresentation, and breach of the duty of good faith arising from a renewable energy contract.
The plaintiff acquired the secured debt of a company that had a contract with the defendant to build a biomass energy facility.
When the company filed for bankruptcy, the defendant treated the contract as automatically terminated pursuant to its terms, requiring the plaintiff to seek a new agreement.
The court dismissed the action, finding that the contract unambiguously provided for automatic termination upon bankruptcy, the defendant did not act in bad faith, and the plaintiff failed to mitigate its damages and prove an enforceable agreement for the sale of the contract.